exam fx texas life and health insurance questions with answers

exam fx texas life and health |\ |\ |\ |\ |\ |\




insurance questions with answers |\ |\ |\




What law protects consumers from the circulation of inaccurate
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or obsolete information? - CORRECT ANSWERS ✔✔The Fair Credit
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Reporting Act |\




What do individuals use to transfer their risk of loss to a larger
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group? - CORRECT ANSWERS ✔✔Insurance
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What term describes the fee a person pays an insurance
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company to start coverage? - CORRECT ANSWERS ✔✔Premium
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When a change needs to be made on the application for
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insurance, which is the best method for correcting the
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information? - CORRECT ANSWERS ✔✔complete a new |\ |\ |\ |\ |\ |\ |\


application or ask the applicant to initial the corrections on the
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original application |\




how is the information obtained for an investigative consumer
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report? - CORRECT ANSWERS ✔✔through interviews with the
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applicants associates, friends, and neighbors. |\ |\ |\ |\




What risk classification would typically qualify for lower
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premiums? - CORRECT ANSWERS ✔✔Preferred Risk |\ |\ |\ |\ |\

,what are the three risk classifications in life insurance? -
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CORRECT ANSWERS ✔✔Standard, Substandard, Preferred |\ |\ |\ |\




what is the main responsibility of a company's underwriting unit?
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- CORRECT ANSWERS ✔✔Risk Selection
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When would a misrepresentation be considered material? -
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CORRECT ANSWERS ✔✔when it may alter the underwriting |\ |\ |\ |\ |\ |\ |\ |\


decision


What entities make up the Medical Information Bureau? -
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CORRECT ANSWERS ✔✔Insurers |\ |\




if an applicant for an insurance policy and the potential insured
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are two different people, what would be the underwriters main
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concern? - CORRECT ANSWERS ✔✔the existence of insurable
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interest between the applicant and the insured
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What is adverse selection? - CORRECT ANSWERS ✔✔People who
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are more likely to submit insurance claims are seeking insurance
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more often than preferred risks
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What type of report provides information about the applicant's
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hobbies, habits and financial status? - CORRECT ANSWERS
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✔✔Inspection report |\




At what point does coverage begin when an agent issues a
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conditional receipt for a life insurance policy? - CORRECT |\ |\ |\ |\ |\ |\ |\ |\ |\

,ANSWERS ✔✔either on the date of the application or the date of
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the medical exam (whichever occurs last)
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what is the best way to handle incomplete insurance
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applications? - CORRECT ANSWERS ✔✔return the application to |\ |\ |\ |\ |\ |\ |\ |\


the applicant for completion
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when does an insurance policy go into effect? - CORRECT
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ANSWERS ✔✔When the policy is delivered and the premium is
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paid


what are the three main instances when insurable interest exists
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in life insurance? - CORRECT ANSWERS ✔✔Insuring your own life,
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the life of a family member, or the life of a business partner or
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someone who has a financial obligation to the policyholder.
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Insurance is a contract that protects the insured from what? -
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CORRECT ANSWERS ✔✔loss |\ |\




what report is used to assess risk associated with a health
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insurance applicants lifestyle and character? - CORRECT
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ANSWERS ✔✔Investigative consumer report |\ |\ |\




If an agent fails to obtain the applicant's signature on the
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insurance application, what must the insurer do? - CORRECT
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ANSWERS ✔✔send the application back to the applicant for
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signature

, what is policy replacement? - CORRECT ANSWERS ✔✔a new
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policy is issue while an existing policy is terminated or reissued
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with a reduction in cash value
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When would a misrepresentation on an insurance application be
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considered fraud? - CORRECT ANSWERS ✔✔when it is intentional
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and material
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who must have insurable interest in the insured? - CORRECT
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ANSWERS ✔✔the policy holder |\ |\ |\




during what stage in the insurance process do insurers evaluate
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information that identifies adverse selection risks? - CORRECT |\ |\ |\ |\ |\ |\ |\ |\


ANSWERS ✔✔underwriting |\




Who is a field underwriter? - CORRECT ANSWERS
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✔✔Agent/Producer


how can health insurance policies be delivered to the insured? -
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CORRECT ANSWERS ✔✔Personally delivered by the agent or
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mailed


in forming an insurance contract, when does an acceptance
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usually occur? - CORRECT ANSWERS ✔✔when the insurer
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approves a prepaid application |\ |\ |\